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PORTUGAL-DEBT-RATING-S&P-CREDIT
S&P upgrades Portugal’s debt rating, citing budget surpluses
WASHINGTON, March 16, 2019 (BSS/AFP) – Global ratings agency S&P on Friday
upgraded Portugal’s sovereign debt, citing the country’s declining level of
indebtedness and expectations for “balanced” growth.
The decision followed September’s upgrade to Portugal’s outlook as the
once troubled European economy continues its recovery.
In 2014, Portugal exited an international bailout program that began at
the height of the European Union debt crisis.
S&P raised its rating to the lower-medium-grade “BBB,” with a stable
outlook, up from “BBB-.”
The agency said Portugal should continue to run budget surpluses, steadily
reducing the ratio of debt to GDP, while posting growth of between 1.5
percent and 1.7 percent through 2021.
Last year’s primary budget surplus of almost three percent of Gross
Domestic Product was “one of the highest in the euro area” or among OECD
members, the agency said in a statement.
Meanwhile, Lisbon’s plans to operate at an overall surplus by next year,
including spending on interest costs, are “credible,” despite the cyclical
economic slowdown in Europe, according to S&P.
Portuguese authorities have also made efforts to protect the economy from
a no-deal Brexit.
“UK residents make up about one-sixth of tourist arrivals in Portugal,
meaning a no-deal Brexit would at least initially incur a cost,” the
statement said.
“The government has introduced measures to facilitate the arrival of UK
nationals in Portugal in the event of a no-deal Brexit.”
BSS/AFP/HR/1110